Partnerships between nonprofit organizations and businesses : legitimacy for sale, but at what cost?

Abstract:

This study explores partnerships between nonprofit organizations (NPOs) and businesses.
In particular, it focuses on the motivations of the NPOs in such partnerships as they relate
to the legitimacy concerns of organizations when viewed through the lens of
neoinstitutional theory. The data were collected via semi-structured phone interviews
with managers of nonprofit organizations from the United States. The transcripts were
analyzed iteratively using a thematic analysis. Results indicate that NPOs may be trying
to recapture eroded moral legitimacy with the public through partnerships with
businesses. However their bargain to seek gains in their pragmatic legitimacy with their
business partner by increasing the business’ social legitimacy appears to be potentially at
the expense of losing cognitive legitimacy with their clients.